New targets on efficiency and profitability - strengthening our competitive advantage through best-in-class distribution network, solid technical capabilities and lean cost base

  • Rationalization of the operating machine
    • Optimised geographical footprint (€ 1 bln cash generated by the exit from unattractive markets)
    • Fit-to-Lead programs to increase productivity by 15%
    • € 200 mln net reduction of operating costs in mature markets (2016 - 2019)
  • Leadership in technical performance
    • P&C: further improve CoR outperformance compared to peers
    • Life: a reduction of average guarantee value to 1.5% and portfolio rebalancing (+6% capital-light reserves as percentage of total) by 2018
  • Customer and Distributor Centricity
    • Customer retention increase: +2 p.p. by 2018
    • Brand strengthening: +3% preference in developed markets by 2018
    • Digital initiatives to improve operating effectiveness and proposition for customers and distributors

2018 targets confirmed

  • Cash flow generation: ˃ € 7 bln
  • Dividends: ˃ € 5 bln
  • Average operating RoE: ˃ 13%

The Generali Group CEO, Philippe Donnet, commented: “Today we are announcing an increase in the scope of our ambition, to be a leader where we operate and deliver excellence in everything we do. We are starting from a strong base: Generali is financially solid and we have a tight control on a lean cost basis. We have established greater coordination and discipline across business units with local CEOs empowered to monitor the progress of our strategic levers through targeted KPIs. Our goal is leadership in our chosen markets, not measured by size but by profitability. We will further improve our operating performance and will create long term value. We’ll improve our efficiency through significant productivity gains and we will optimize our geographical footprint, while securing investments in key growth markets. We will maintain and further improve our leading edge in technical performance and excellent profitability, both on our P&C and Life business, in order to overcompensate the effects of a prolonged period of adverse market conditions. Finally, we will focus on customers and distributors by leveraging on data analytics and innovative telematics products. Today we confirm the financial targets for the period 2015-2018. None of this would be possible without the unparalleled level of pride and passion of Generali employees and our network of agents and collaborators around the world."

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